Tesla and Mercedes-Benz to Collaborate on a New Mercedes EV

Tesla has already collaborated with Toyota for an EV version of the Toyota RAV4 and now it’s being reported that the highly sought after car company is set to work with Mercedes-Benz on a new electric vehicle. Tesla and Mercedes-Benz already have a relationship for the electric Smart cars that use Tesla’s battery packs, but this next collaboration will be larger.

The Tesla Model X

In Tesla’s most recent shareholder’s letter, they revealed plans to work with Mercedes-Benz on a new electric model that will use a full Tesla powertrain, including the motor, transmission, inverter and software. Tesla did not release any other details about the new Mercedes model other than saying that revenue from the new collaboration will start coming in in the second quarter of this year.